Anhui Conch's Profitability Will Likely Improve on Stabilizing Cement Price and Easing Costs

With annual cement production capacity of over 400 million metric tons in 2024, Anhui Conch Cement is one of the largest cement producers in the world. Closely tied to infrastructure and real estate construction, China’s cement industry is challenged by the shift toward a less construction-intensive economy. However, we believe Conch's strong balance sheet (net cash as of the end of 2024) and best-in-class mining assets position it best to weather slowing investment in China and achieve modest market share gains at the expense of overleveraged competitors.